DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
MORTGAGE LOAN ORIGINATORS AND MORTGAGE COMPANIES
4CCR 725-3

NOTICE OF PROPOSED PERMANENT RULEMAKING HEARING
November 20, 2013

1-5-1 MORTGAGE LOAN ORIGINATOR LICENSE AND REGISTRATION INACTIVATION AND REACTIVATION

Section 1.	Authority
Section 2.	Scope and Purpose
Section 3.	Applicability
Section 4.	1-5-1 Mortgage Loan Originator License and Registration Inactivation and Reactivation

Section 1.	Authority

The Board of Mortgage Loan Originators updates the following permanent rule entitled 1-5-1 Mortgage Loan Originator License and Registration Inactivation and Reactivation, according to authority provided in section 12-61-910.3, C.R.S.

This notice proposes to update rule 1-5-1.  The rule requires administrative fees to be collected when a mortgage loan originator seeks to reactivate their license after it has been inactivated for specific reasons.

Section 2.	Scope and Purpose

Section 12-61-903.3, C.R.S., allows the Board of Mortgage Loan Originators to inactivate licenses for specific reasons.  The inactivation process creates an administrative burden on the Division of Real Estate, which includes ensuring the applicant is compliant with all licensing requirements.  This task is similar in nature to review of a license application, but is often less intensive procedurally.  Accordingly, the purpose of this rule is to establish an administrative fee collected upon reactivation for specific circumstances.

Section 3.	Applicability

This rule applies to all individuals required to be licensed pursuant to sections 12-61-902 and 12-61-903, C.R.S. 

Section 4. 	1-5-1 Mortgage Loan Originator License and Registration Inactivation and Reactivation

1.	If a mortgage loan originator license or registration is inactivated by the Board of Mortgage Loan Originators or an authorized representative of the Board for one or any combination of the following reasons, the mortgage loan originator shall pay an administrative fee determined by the Board, due to the related increase in administrative burden, in order to reactivate their license:  

a.	The mortgage loan originator has failed or is failing to comply with the surety bond requirements of sections 12-61-903(6)and 12-61-907, C.R.S., or any rule of the Board that directly or indirectly addresses surety bond requirements;

b.	The mortgage loan originator has failed or is failing to comply with the errors and omissions insurance requirement in section 12-61-903.5, C.R.S., or any rule of the Board that directly or indirectly addresses errors and omissions insurance requirements;

c.	The mortgage loan originator has failed or is failing to maintain current contact information, surety bond information, or errors and omissions insurance information as required by the Mortgage Loan Originator Licensing and Mortgage Company Registration Act,  or by any rule of the Board that directly or indirectly addresses such requirements;

d.	The mortgage loan originator has failed or is failing to respond to an investigation or examination;

e.	The mortgage loan originator has failed or is failing to comply with any of the education or testing requirements set forth in the Mortgage Loan Originator Licensing and Mortgage Company Registration Act, or by any rule of the Board that directly or indirectly addresses education or testing requirements; or 

f.	The mortgage loan originator has failed to register with, and provide all required information to, the Nationwide Mortgage Licensing System and Registry.

2.	Individuals who have an inactive license are prohibited from practicing as a mortgage loan originator.  Additionally, individuals who have an inactive license are prohibited from engaging in any mortgage related activities which requires licensure pursuant to the Colorado Mortgage Loan Originator Licensing and Mortgage Company Registration Act, Board rule, or as prescribed by a Board position statement.

3.	In order for an inactive mortgage loan originator license to be reactivated, the individual seeking reactivation shall provide the Division of Real Estate with proof of full compliance with current mortgage loan originator license law.

4.	In order for an inactive mortgage loan originator license to be reactivated, the individual seeking reactivation must pay the requisite administrative fee.  All administrative fees shall be collected in the form of a money order or a cashier’s check.

5.	The Board has created the Mortgage Loan Originator License Reactivation Form.  This form may be found on the Division of Real Estate’s website at http://www.dora.state.co.us/real-estate/mortgage/MBForms.htm. [REPEALED]

A hearing on the above subject matter will be held on Wednesday, November 20, 2013, at the Colorado Division of Real Estate, 1560 Broadway, Suite 1250-C, Denver, Colorado 80202 beginning at 9:00 a.m. 

Any interested person may participate in the rule making through submission of written data, views and arguments to the Division of Real Estate. Persons are requested to submit data, views and arguments to the Division of Real Estate in writing no less than ten (10) days prior to the hearing date and time set forth above. However, all data, views and arguments submitted prior to or at the rulemaking hearing or prior to the closure of the rulemaking record (if different from the date and time of hearing), shall be considered. 

Please be advised that the rule being considered is subject to further changes and modifications after public comment and formal hearing.